Royal London buys Manc's One New York Street for £55m

By Paul Norman - Wednesday, December 06, 2017 10:26

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Royal London Asset Management has bought One New York Street in Manchester from Invesco Real Estate for £55m, a 4.2% yield.

The Bruntwood developed building comprises 117,000 sq ft across 13 floors comprises office space on upper floors and restaurant space to ground floor. It is multi-let with tenants including ADT Group, Mills & Reeve, and Daiwa Securities Group and produces a total annual rental income of approximately £3m, with an average unexpired lease term of circa six years.

At the time of sale it was 16% vacant. The current net initial yield is 4.2%, with an equivalent yield of 5.25%.

It is multilet to occupiers including Marks & Clerk, AECOM and Turley, with The Alchemist occupying a ground floor pub/restaurant unit. Bruntwood sold the building to Invesco in 2012 for £41.65m.

JLL acted for Invesco; Royal London was represented by Ryden.

James Porteous, capital markets director at JLL in Manchester, said “The city centre office investment market has been particularly active this year with over £600m already transacted and JLL havs been fortunate to be involved in many of these transactions.

“It’s extremely likely that total volumes for 2017 look set to exceed last year’s total of £642m but will be some way off the stellar year of 2014 which saw over £1bn sold. There has been a definite trend this year towards off market deals and the city attracting equity from overseas investors.”

Alasdair Munn, partner investment and finance at Ryden, said: “The property will be a positive addition to Royal London`s growing portfolio of modern, multi let offices located in the UK`s premier cities where value can be added not only by selective asset selection but also through active asset management.”

pnorman@costar.co.uk

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